Although only a small proportion of Britons have problems paying off their student debts, the format has wider implications for the financial stability of graduates in later life, it has been claimed.
According to Credit Action, the availability of credit early in life means students are starting to think that being in debt is the norm, paving the way for the entrenchment of a debt culture in Britain.
In fact, Chris Tapp, spokesperson for the money education charity, believes that student loans are nothing short of "government-endorsed debt on a massive scale".
This is in spite of the fact that, given the repayment structure, graduates are able to free themselves from debt relatively easily.
"The [direct financial implications of student loans] is actually very small, because of the nature of student debt - the fact that it's taken off earnings when you're earning a certain amount and the rate of interest it's charged at is quite low," commented Mr Tapp.
"Actually, the amount of people who are struggling because they're trying to pay back their student loan is probably very, very small. So in and of themselves, I don't think there's a huge financial issue with student loans."
"The way of thinking that's come in with the student loan, and the increasing debt levels that we've seen amongst people in their twenties, is more of an issue. So whilst the student loan itself isn't a problem, it's feeding into a debt culture, which certainly is [a problem]."
This problem is amplified, Mr Tapp suggests, as 80 per cent of 16 to 24-year-olds admit they do not keep tabs on their personal finance situation in the slightest - precisely because they have credit available to them.
If this outlook is continued into later life, credit card and overdraft facilities are likely to be abused.
As a result, Credit Action has suggested better financial education should be provided to ensure students are fully aware of the implications of taking out loans and falling into debt.
The problem has been highlighted by a recently published research by website jobs2view which shows the average student has debts of £9,348 on leaving university, while also being indebted to their parents to the tune of £2,005.
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